CMC Markets sees H1 profit up as client trade volumes rise

Global Brokerage

28/09/2017 07:36

Sept 28 (Reuters) - British financial spreadbetting firm CMC 
Markets  CMCX.L  said first-half profit would be significantly 
higher than a year earlier, as increased client trading volumes 
helped offset challenges from a sector-wide regulatory 
clampdown.   
    The company, set up by Chief Executive Peter Cruddas as a 
foreign exchange broker with a 10,000 pound investment in 1989, 
said net operating income and revenue per client in the six 
months ending Sept. 30 were higher than a year earlier. 
 urn:newsml:reuters.com:*:nRSb0267Sa 
    Active contracts for differences (CFDs) and spreadbet 
clients for the period were slightly lower than a year earlier, 
which saw a boost following the short-term interest seen around 
Britain's vote to leave the European Union, CMC said.  
    "The firm remains cautious about the future outlook given 
the ongoing regulatory uncertainty and the impact, if any, 
potential changes could have on Group performance," CMC said in 
a statement on Thursday. 
    CFDs allow investors to bet on moves in share prices without 
having to buy the underlying stock. However, regulators have 
been tightening controls on the fast-growing 3.5 billion pound 
($4.70 billion) spreadbetting industry.  urn:newsml:reuters.com:*:nL5N1E11M0 
    CMC, which rivals IG Group   IGG.L , Denmark's Saxo Bank and 
Global Brokerage Inc  GLBR.O , said costs would rise in the 
second half of the year, driven higher by marketing initiatives 
and the roll out of its stockbroking partnership with ANZ Bank 
 ANZ.AX . 
    CMC is expected to report first-half results on Nov. 23.  
 
 (Reporting by Noor Zainab Hussain in Bengaluru; editing by 
Simon Jessop) 
 ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810; 
Outside UK +91 80 6749 2764; Reuters Messaging: 
noor.hussain.thomsonreuters.com@reuters.net)) 
 
Keywords: CMC MARKETS OUTLOOK/